Robert Greil, chief strategist at Merck Finck, expects inflation figures to fall in the eurozone and looks ahead to elections in France and Britain. Key economic data for the coming week, such as the ISM purchasing managers' index for June, are also due.
After the preliminary German inflation figures for June next Monday, the Eurozone figures will be known a day later: “Despite the European football championship, inflation data in Germany is likely to have decreased slightly” says Robert Greil. Merck Finck's chief strategist notes “probably at least slightly downward trends in most subcategories, including energy prices, year on year, which is unlikely to apply to some service prices, such as Combined trips”. Greil continues: Basically, the inflation trend in Germany, as well as in the euro area, remains generally downward, which should give the ECB room for further cuts to key interest rates as the year progresses.
Elections in France and Great Britain, in the spotlight
Furthermore, next week they will focus attention on the upcoming elections in France and Great Britain: “The result of the French elections in particular could cause greater fluctuations in the financial markets.” More macroeconomic data will be available in Germany (and also in Germany). in Europe as a whole) next week, the US and Japan) the final June purchasing managers' indexes are on the agenda on Monday and Wednesday, before industrial orders are released on Thursday and industrial production of May on Friday.
June labor market report concludes important week of US data
Outside Europe, the main US releases are the ISM purchasing managers' indices for June: on Monday for the manufacturing sector and on Wednesday for services. On this day, new orders from US industry and the minutes of the latest Federal Reserve meeting are also on the agenda before the June labour market report concludes the important US data week on Friday. In China, the June purchasing managers' indices are on the agenda from Sunday to Wednesday.